The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with standards established by the Financial Accounting Standards Board (FASB) for external financial reporting
The balance sheet presents the College’s financial position as of August 31, 2018. The College’s largest financial asset is its investment portfolio, representing 62% of total assets, with a fair market value of $345.1 million. The investment portfolio includes $324.1 million relating to the College’s endowment, which represents contributions subject to donor-imposed restrictions that such resources be maintained permanently by the College or assets designated to the endowment by the Board of Trustees. The endowment is managed to achieve a prudent long-term total return (dividend and interest income and investment gains). The Trustees have adopted a policy designed to preserve the value of the endowment portfolio in real terms (after inflation) and provide a predictable flow of income to support the College’s operations. In accordance with the policy, $14.2 million of investment return on the endowment portfolio was used to support operations in fiscal year 2018.
The College’s second largest and oldest asset is its physical plant, consisting of land, buildings, furniture and fixtures, and equipment. As of August 31, 2018, the net book value of plant assets was $150.3 million, representing 27% of the College’s total assets.
The College’s liabilities of $195.7 million are substantially less than its assets. As of August 31, 2018, long-term debt represented the most significant liability at $106.6 million.
In accordance with FASB standards, the net assets of the College are classified as either unrestricted, temporarily restricted, or permanently restricted. Unrestricted net assets are not subject to donor-imposed restrictions. At August 31, 2018, the College’s unrestricted net assets totaled $127.3 million. Temporarily restricted net assets are subject to donor-imposed restrictions that will be met either by actions of the College or the passage of time and appreciation on donor endowment funds. The College’s permanently restricted net assets consist of the original principal of endowment gifts and certain pledges.
The statement of changes in net assets presents the financial results of the College and distinguishes between operating and non-operating activities. Unrestricted operating revenues totaled $220.3 million. The College’s principal sources of unrestricted operating revenues were student tuition and fees, net of student aid, representing 52% of operating revenues, and grants and contracts for research and training programs, representing 23% of operating revenues. Investment return, auxiliary activities, and other sources comprise the remaining 25% of operating revenues. Operating expenses totaled $217.7 million. Non-operating activities principally include contributions, investment return, net of amounts appropriated as determined by the College’s endowment spending policy and non-operating changes to pension and postretirement liabilities.
BALANCE SHEET August 31, 2018
|
ASSETS |
|
|
Cash |
29,268,433 |
|
Student accounts and other receivables, net |
6,319,904 |
|
Grants and contracts receivable |
8,785,837 |
|
Inventories and other assets |
2,363,709 |
|
Contributions receivable, net |
14,195,026 |
|
Funds held by bond trustees |
90,388 |
|
Investments |
345,118,330 |
|
Student loans receivable, net |
2,299,436 |
|
Plant assets, net |
150,257,756 |
|
TOTAL ASSETS |
558,698,819 |
|
|
|
|
LIABILITIES |
|
|
Accounts payable and accrued expenses |
13,380,746 |
|
Deferred revenues |
26,462,131 |
|
Long-term debt, net |
106,557,247 |
|
Accrued pension and other benefit obligations |
42,552,945 |
|
Other liabilities |
3,570,968 |
|
Funds held for others |
3,194,559 |
|
TOTAL LIABILITIES |
195,718,596 |
|
|
|
|
NET ASSETS |
|
|
Unrestricted net assets |
127,278,283 |
|
Temporarily restricted |
124,349,864 |
|
Permanently restricted |
111,352,076 |
|
TOTAL NET ASSETS |
362,980,223 |
|
TOTAL LIABILITIES AND NET ASSETS |
558,698,819 |
STATEMENT OF CHANGES IN NET ASSETS Fiscal Year ended August 31, 2018
|
Unrestricted |
Temporarily restricted |
Permanently restricted |
Total |
|
|
OPERATING REVENUES |
||||
|
Student tuition and fees, net of student aid |
113,894,475 |
- |
- |
113,894,475 |
|
Grants and contracts |
50,738,145 |
- |
- |
50,738,145 |
|
Contributions |
4,299,018 |
- |
- |
4,299,018 |
|
Endowment return appropriated and other investment income |
14,922,597 |
- |
- |
14,922,597 |
|
Sales and services of auxiliary enterprises |
22,659,520 |
- |
- |
22,659,520 |
|
Other sources |
6,076,068 |
- |
- |
6,076,068 |
|
Net assets released from restrictions |
7,710,246 |
(7,710,246) |
- |
- |
|
TOTAL OPERATING REVENUES |
220,300,069 |
(7,710,246) |
- |
212,589,823 |
|
OPERATING EXPENSES |
||||
|
Instruction |
76,531,662 |
- |
- |
76,531,662 |
|
Research, training and public service |
45,944,764 |
- |
- |
45,944,764 |
|
Academic support |
19,554,587 |
- |
- |
19,554,587 |
|
Student services |
10,472,061 |
- |
- |
10,472,061 |
|
Auxiliary enterprises |
41,609,149 |
- |
- |
41,609,149 |
|
Institutional support |
23,592,748 |
- |
- |
23,592,748 |
|
TOTAL OPERATING EXPENSES |
217,704,971 |
- |
- |
217,704,971 |
|
CHANGE IN NET ASSETS FROM OPERATIONS |
2,595,098 |
(7,710,246) |
- |
(5,115,148) |
|
NON-OPERATING ACTIVITES |
||||
|
Contributions |
- |
9,830,477 |
3,103,000 |
12,933,477 |
|
Investment return, net of amounts appropriated |
3,937,409 |
9,491,301 |
- |
13,428,710 |
|
Pension and postretirement changes other than net periodic benefit costs |
4,364,856 |
- |
- |
4,364,856 |
|
Release from restrictions for capital |
1,564,199 |
(1,564,199) |
- |
- |
|
Other, net |
(257,252) |
(30,505) |
95,182 |
(192,575) |
|
CHANGE IN NET ASSETS |
12,204,310 |
10,016,828 |
3,198,182 |
25,419,320 |
|
NET ASSETS AT BEGINNING OF YEAR |
115,073,973 |
114,333,036 |
108,153,894 |
337,560,903 |
|
NET ASSETS AT END OF YEAR |
127,278,283 |
124,349,864 |
111,352,076 |
362,980,223 |
From Mary Swartz Rose and Lawrence Cremin to George Bond and Joan Gussow, the legacy of many of TC's greatest teacher-scholars is carried on through TC's tribute scholarships.
Every gift to the TC Annual Fund, no matter the amount, makes a difference, and goes directly in support of teaching and learning. Your participation matters!